IKEA Omni-Channel Expansion in India

With the changing consumer behaviour due to the health crisis, online business will play a “very important role” for IKEA, which plans to expand in India with an omni-channel approach. India CEO Peter Betzel said, “India remains a very important market and we have our plans to enter many cities with an omni-channel approach. Bengaluru, Mumbai, Delhi are among the prioritised cities for Ingka Group for fast expansion." IKEA, which is planning to open stores in Mumbai, Bengaluru and Delhi/NCR, is now looking to have a omni-channel approach, by integrating its brick and mortar format stores with online stores. “We will establish a strong omni-channel presence in Hyderabad, Mumbai, Bengaluru and Delhi/NCR and are also exploring other opportunities in India, “ he said adding “It will be through a combination of big IKEA stores, smaller city-centre stores, and online platform as a selling channel.” IKEA, which received government approval in 2013 for its Rs 10,500-crore proposal to open retail stores under 100 per cent FDI, has signed MoUs with Karnataka, Telangana, Maharashtra, Uttar Pradesh and Haryana to open retail stores. The company is planning to open 25 stores by 2025 in nine cities. The company is planning to open 25 stores by 2025 in nine cities.  Ingka, which handles the global retail operation for IKEA, would open its second store in Mumbai in the next six months. It will based on xpansion plans, will also develop logistical capabilities to serve customers more efficiently. Presently, IKEA has one distribution centre in Pune. During lockdown, IKEA had introduced ''Click and Collect'' contactless and safe shopping in Hyderabad. Now more people are shopping online for all the things they need for their homes. However, physical meeting places will remain essential hub for home furnishing inspiration, feel, touch, try our range, fun day out, even though in a different manner due to COVID-19. It is not going to be one or another. It is altogether,”.